Chinese Car Makers Without Foreign Partners, Such as Geely, Are Suffering as Consumers Become Enamored With Overseas Brands

To succeed in China's car market, it is better not to be Chinese. Drivers there are losing their lust for local brands. The market share of once-hot firms, such as Geely Automobile Holdings and BYD, fell to just a quarter of cars sold in February, from nearly a third in 2010, according to LMC Automotive. There is little reason to think the trend will reverse.

Local firms did well around 2009, when a stimulus plan halved sales taxes on cars with smaller engines, disproportionately helping local firms making such cars. This...